What Does FOB Stand For?
FOB stands for Free On Board
FOB, or Free On Board, is a shipping term used in international trade to indicate that the seller is responsible for all costs and risks associated with delivering goods to a specified port of shipment. Once the goods are loaded onto the vessel, the responsibility transfers to the buyer, who then assumes all risks and costs associated with transporting the goods to their final destination. FOB terms are critical for determining liability and freight charges in transactions.
Added on 14th April 2008 | Last edited on 16th June 2025 | Edit Acronym